The Dow Jones Industrials descended 158.84 points to close Tuesday at 35,314.29, ed by a decline in Goldman Sachs. Monday, the 30-stock index had had its best day since June 15.
The S&P 500 index lost 19.06 points to 4,499.38.
The NASDAQ index fell 210.85 points, or 1.5%, to 13,783.55. putting it down more than 3% month to date. Tuesday was the fifth negative day out of six sessions for both the S&P 500 and the NASDAQ
Banks fell broadly after Moody’s downgraded the credit rating on several regional banks, including M&T Bank and Pinnacle Financial, citing deposit risk, a potential recession and struggling commercial real estate portfolios. The credit agency also placed Bank of N.Y. Mellon and State Street on review for a downgrade.
Traders also parsed through the latest batch of earnings. UPS shares slipped 1% after the delivery giant reported weaker-than-expected revenue for the second quarter. The company also lowered its full-year revenue outlook.
The corporate earnings season has so far been better than anticipated. With 89% of S&P 500 stocks done reporting quarterly results, about four-fifths of them have beaten Wall Street’s expectations, according to FactSet. But it appears a lot of those results were already priced into the market, given the pullback the last two weeks.
Traders also parsed through the latest batch of earnings. UPS shares dropped more than 1% after the delivery giant reported weaker-than-expected revenue for the second quarter. The company also lowered its full-year revenue outlook.
Prices for the 10-year Treasury gained sharply, lowering yields to 4.02% from Monday’s 4.08%. Treasury prices and yields move in opposite directions.
Oil prices regained 93 cents to $82.87 U.S. a barrel.
Gold prices slid $10.60 to $1,959.40 U.S. an ounce.